The Volkswagen Group’s responsible approach to dealing with risks is supported by a comprehensive Risk Management System and Internal Control System (RMS/ICS). The organisational structure of Volkswagen Group’s RMS/ICS is based on the internationally recognised COSO Enterprise Risk Management Framework standard (COSO: Committee of Sponsoring Organizations of the Treadway Commission). Standardised Group-wide policies form the basis for a transparent and adequate approach to handling risks. This includes
- Promoting an open risk culture
- Aligning the RMS/ICS with corporate goals
- Balancing risks and opportunities in order to make the most of opportunities involving manageable and controllable risks
- Complying with rules and regulations
- Ensuring the suitability of the RMS/ICS in terms of the type, scope, complexity and level of risk in the actual business activity and environment
- Regularly examining the RMS/ICS for effectiveness and efficiency
The Group’s Risk Management and Internal Control System is based on three pillars: In addition to the annual regular Governance, Risk & Compliance (GRC) process, with its focus on systemic risks, and the risk quarterly process, which concentrates on acute risks, we are introducing operative risk management in the individual divisions.